JUDGMENT
Introduction
[1] The appellant is a legal firm practicing under the name of J Tan Teoh Associates and had filed its appeal against the judgment of the learned High Court Judge at Kota Kinabalu, Sabah which had dismissed its claim against the respondent for indemnity under the professional indemnity insurance with costs of RM10,000.00 to the respondent.
[2] The appellant was the plaintiff in the Court below while the respondent was the defendant. The parties shall be referred to as they were in the Court below.
Brief Facts
[3] The plaintiff was insured with the defendant subject to all the terms and conditions under the Professional Indemnity Policy No KG-09225439-PI (the said Policy). The said Policy's limit of liability is RM5,000,000.00 for any one occurrence and/or any one period of insurance. The coverage period for the said Policy is from 10 January 2015 to 9 January 2016. The said Policy is subject to a deductible of RM20,000.00 on each and every claim. There are also extensions covered under the said Policy including Libel and Slander, Loss of Documents and Dishonesty of Employee subject to the terms and conditions therein.
[4] Earlier on, the plaintiff was sued by one Kuan Ah Hock (Kuan) in Suit No BKI-22NCCVC-115-10-2015 for the sum of RM2,000,000.00 ("Kuan Suit"). After a full trial, judgment was on the 3 March 2017 entered in favour of the said Kuan which was paid by the plaintiff ("Kuan Judgment"). The plaintiff appealed to the Court of Appeal and the same was dismissed on 6 March 2018.
[5] The defendant has via its letter dated 9 August 2017 to the plaintiff rejected the plaintiff's request for indemnity.
[6] Hence, the plaintiff filed a claim against the defendant for:
(i) The defendant to pay the sum of RM2,558,181.28 to the plaintiff after deduction of RM20,000.00;
(ii) Interest on the sum RM2,558,181.28 at the rate of 5% per annum pursuant to s 11 of the Civil Law Act 1956 or at such rate to be determined by the Court from 18 December 2017 to the date of judgment;